E#1 LOCKFREE COMPANY has the following balances in selected accounts on December 31, 2011 S 0 0 70.000 0 Accounts Receivable Accumulated Depreciation Equipment Equipment Interest Payable Notes Payable Prepaid Insurance Salaries Payable Supplies Unearned Consulting Revenue 20.000 2.640 O 2,450 40,000 All the accounts have normal balances. The information below has been gathered as of December 31, 2011 1. LockFree Company borrowed $20,000 by signing a 12%. one-year note on September 1, 2011 2. A count of supplies on December 31, 2011, indicates that supplies of $700 are on hand 3. Equipment was purchased on January 1, 2009 for $70,000. The useful life is for ten years. Depreciation is booked annually 4. LockFree Company paid $2.640 for 12 months of insurance coverage on June 1, 2011. 5. On December 1, 2011. LockFree collected $40,000 for consulting services to be performed from December 1, 2011, through April 30, 2012. Assume an equal amount is earned for each month a 6. LockFree performed consulting services for a client in December 2011. The client will be billed $4,600. 7. LockFree Company pays its employees total salaries of $10,000 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29. employees were paid for the week ending December 26. All employees worked the last 3 days of 2011. Instructions Prepare adjusting entries for the seven items described above as of December 31, 2011. Do NOT book the original entry